VW's Spanish Auto Deal Delayed on Greek Drama

Volkswagen has delayed pricing on its Driver One Espana deal yet again, according to market reports.

They have indicated that the deal would not price at the close of this week as intended and instead will look to price early next week. According to a Reuters report, the deal is likely to price on May 10. Pricing has already been delayed once as a result of the Icelandic volcano-related flight cancellations.

Volkswagen's Spanish deal is expected to issue €686 million ($937 million) of ABS floating-rate notes, due September 2021. The transaction is the first securitization backed by auto loans originated by Volkswagen Finance within Spain.

Fitch Ratings has assigned the €622.50 million class-A notes and expected rating of 'AAA' and the €63.75 million class B an 'A+'. Standard & Poor's has also assigned it preliminary ratings to the deal of 'AAA' for class A and 'A' for class B.

The note issued will be collateralized by a static pool of auto loan receivables purchased at closing from Volkswagen Finance.

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